Nonresident Alien Reporting: IRS Compliance (Completed)

How do you know whether you can accept a W-9 from someone or you must request a W-8 instead? What if you send them a 1099 when you should have sent them a 1042-S. How will you deal with the IRS demand for the backup withholding you failed to deduct from the Nonresident Alien’s (NRA’s) payments? The IRS is working hard to reduce the delinquent tax burden. They know we are becoming relatively compliant with our 1099 reporting, but they also know we are far less sure of ourselves when it comes to identifying and performing backup withholding on our NRA’s. Collecting the tax due from NRAs working in the U.S. is a Tier 1 audit issue. This tax burden is minimized when companies making payments to NRAs for dependent and independent personal services properly withhold on these payments.

Who Should Attend
Information Reporting Officers, Tax Managers, Compliance Officers, Compliance Managers, CFOs, Controllers, Accounting Managers, Bank Managers, Auditors, IT Managers, and Risk Managers.

Topics Covered

• How to determine whether Nonresident Aliens are working for you
• Review the five forms W-8 including the new W-8BEN-E just released in Q1-2014
• Drafts of revised forms W-8 soon to be released
• How to determine which W-8 to provide to the NRA
• How a NRA individual must support their claim of exemption from withholding
• Best way to handle questions form NRAs who do not understand your requests or the forms
• Examine a tax treaty and learn how to use it to confirm a claim of exemption from or reduced rate of backup withholding
• Make your backup withholding deposits timely and keep the IRS from confusing them with your payroll tax withholding deposits
• Study the 1042-S and related forms for filing and reporting backup withholding on the Annual Withholding Tax Return
• Avoid the penalties for under-withholding and failure to report your NRA's
• Discover the best practices for managing NRA information reporting and backup withholding

Learning Objectives

• Identify the best tools available to identify your Nonresident Alien payees (NRA's) and bring your company into compliance with the 30% backup withholding requirements
• Recognize and implement a solid plan to move your company toward regulatory compliance, efficiency improvements, standardized processes, & adequate documentation to ensure your NRA's are properly handled according to IRS and tax treaty regulations
• Differentiate how to obtain the treaties and confirm exemption claims made by your NRA's with the IRS

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None